-The Table Above Shows the Balance Sheet for Ralph's Bank

question 78

Multiple Choice

-The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has desired reserves of .

• A) $450
• B) $2,500
• C) $3,000
• D) $500

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Definitions:

MSB Curve

The Marginal Social Benefit curve, representing the additional benefit to society as a whole from consuming one more unit of a good.

MCA Curve

A term that could be mistaken but likely refers to the Marginal Cost Curve, which depicts the additional cost of producing one extra unit of output.

Marginal External Cost

The additional cost incurred by society as a whole due to one more unit of a good being produced, not accounted for by the producer.

Competitive Price

The price at which a product or service is sold that is reasonably close to the prices of competing products or services in the same market.